Dividing Business Assets in Divorce – Legal Advice in Birmingham, Northampton and London

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Married couples who own a business together are faced with the issue of dividing business assets when the relationship breaks down. If you decide to legally end your marriage, the value of your shared business venture is considered an asset and it will be taken into account by the Court when deciding on a fair financial settlement agreement.  

Whether you have 50:50 ownership or one of you is the majority holder, our team is here to give you clear and honest legal advice on how to best handle the division of business assets in a divorce. Start by getting in touch with us for your FREE, no-obligation consultation with one of our divorce solicitors in Birmingham and Northampton.

How are business assets divided in divorce?

In the UK, business assets are considered matrimonial assets and as such, they have to be split fairly in the divorce. For that to happen, all your business assets have to undergo a valuation, following which the Court investigates you and your ex-partner’s involvement in the business before making the final decision on how the business assets should be divided. 

The most common outcome is for the business to be awarded to one spouse based on their level of involvement in the business, while the other party is financially compensated. Alternatively, the Court could rule that the business must be sold and the monetary assets are then split between you and your ex-partner. The business could potentially continue to exist as a joint venture, however, that is a more rare occurrence. 

The Court’s approach could include the following actions:

• dividing assets in their current form (in specie) to ensure both parties receive a proportionate share of liquid and illiquid assets
• applying discounts to illiquid assets received by a party
• transferring shareholdings between the parties

To learn more about your options and what the different rulings mean for you, our divorce solicitors in Birmingham and Northampton will be happy to offer assistance, so please don’t hesitate to get in touch. 

How we can help

Why choose Witan Solicitors?

When divorce gets complicated, the combined knowledge and experience of the Witan Solicitors team can be a huge asset. We have supported businesses, individuals and families at their most difficult time, which gives us a unique perspective and allows us to truly tailor our approach to your specific needs. Our commitment to achieving a positive outcome for you is the driving force behind our excellent customer service. 

40+ years experience  

Experience matters when it comes to finding the right solutions in a complex legal case and here, at Witan Solicitors, we have more than four decades of it. With our invaluable insight, you can avoid the financial pitfalls in the process and obtain a favourable resolution.

Professional advice in simple words 

Dividing business assets in a divorce is a complicated matter and we know that the terminology can be confusing for anyone who is not a legal practitioner. This is why we always take care to explain everything in simple terms so that you have a clear idea of your options and you can make an informed decision about your financial situation.

Members of Resolution

We are members of Resolution, a community of over 6,500 legal professionals who work with families and individuals to resolve family disputes in a constructive way. 

FAQ

Are business assets marital property?

In most cases, the answer is yes. Even if your partner was only working for the company or helping run it, they still may be entitled to a substantial part of the business assets when the relationship breaks down. 

What if we only own a share of the business?

If you and your spouse own the entire business, the whole business is valued and then split in the divorce financial settlement. However, if you only own a part of a business in partnership with other shareholders, then only your and your partner’s shares will be distributed in the settlement. 

How likely is my business to be sold during a divorce?

Highly unlikely. A court order to sell a business is only issued if there is no other way to divide the business assets fairly and accurately.

What if my partner isn’t really involved in the business?

Even if your spouse isn’t directly involved in the business, they are still entitled to some compensation, as your shared income would have been significantly altered by the business earnings. Therefore, if you are the active party, you will likely keep the business but you will be required to either pay a lump sum of money to your spouse or to make regular payments to offset their loss.